Introduction to Management Theory

Learning Outcomes: To understand the way in which management thought has evolved in the West since 1900; To appreciate how these 'theories' may be applied today; To compare and contrast the various theories presented.

Your Management Thoughts

Evolution of Management Thinking

The Management Theories 1. The Classical School 2. The Human Relations School 3. The Systems School 4. The Contingency School

The Management Theories 1. The Classical School 2. The Human Relations School 3. The Systems School 4. The Contingency School

1. The Classical School

Classical School

Henri Fayol: - 5 Functions of Management - 14 Principles of Management Classical School

5 Functions of Management

14 Principles of Management

Classical School Key Points

Classical School - Key Points

Classical School Critique

[The writings of the classical school] ‘have served to label our areas of ignorance, and may have fulfilled the need of telling managers what they should be doing (even if it did not tell them what they did). But the classical school has for too long served to block our search for a deeper understanding of the work of the manager.’ Mintzberg (1973) Classical School - Critique

The Management Theories 1. The Classical School 2. The Human Relations School 3. The Systems School 4. The Contingency School

2. The Human Relations School

Human Relations School

Douglas McGregor Human Relations School

Key Points

Human Relation School – Key Points

Human Relations School Critique

Human Relations School - Critique

The Management Theories 1. The Classical School 2. The Human Relations School 3. The Systems School 4. The Contingency School

3. The Systems School

Systems School

Organisational System Johnson, Kast & Rosenweig (in “The Theory and Management of Systems”. 3 rd Ed.) Goals & Values Managerial Subsystem Technical Subsystem Psychosocial Subsystem Structural Subsystem

Socio-technical System A Client need to build Satisfaction of the client need Start End Building Process Design Construction Co-ordination Higgin & Jessop (1965)

‘If the structure [of an organisation] is its skeleton, the jobs, perhaps, its muscles, the people its blood and guts and its physical perspectives its flesh, then there still remains the nervous system, the respiratory system, the circulation system, the digestive system, etc. As with the body, the systems of an organisation overlap and interlink the parts, the structure and its members. They are of a different logical order from the structure or the components pieces, for they are defined by their purpose, and are concerned with flows or processes through the structure. They are in fact ‘systems’ - it remains the best, if the vaguest, word meaning at its broadest only an interdependent set of elements.’ Handy (1985) Systems School

‘If the structure [of an organisation] is its skeleton, the jobs, perhaps, its muscles, the people its blood and guts and its physical perspectives its flesh, then there still remains the nervous system, the respiratory system, the circulation system, the digestive system, etc. As with the body, the systems of an organisation overlap and interlink the parts, the structure and its members. They are of a different logical order from the structure or the components pieces, for they are defined by their purpose, and are concerned with flows or processes through the structure. They are in fact ‘systems’ - it remains the best, if the vaguest, word meaning at its broadest only an interdependent set of elements.’ Handy (1985) Systems School

Critique

Systems School - Critique

The Management Theories 1. The Classical School 2. The Human Relations School 3. The Systems School 4. The Contingency School

Reappraisal of the role of management theories. Each theory or school of thought can be no longer viewed as an independent approach. Rather than searching for the one best way to organise under all conditions, develop contingent upon the demands of the orgainsation task, technology, or external environment. Contingency School

Burns and Stalker‘s Two Types of Organisation Mechanistic Organisation Organic Organisation StructureRigidFlexible Tasks, methods and duties Well-definedConstantly adjusted CommunicationsVertical Hierarchy Lateral Hierarchy

Mechanistic Organisation Organic Organisation Most appropriate for Routine activities Non-routine activities Major concernProductivityCreativity & innovation Decision makingProgrammableEncourage self- exploring Lawrence and Lorsch (1967)

‘Contingency theory suggests that “organisational variables are in a complex inter-relationship with one another and with conditions in the environment”, and that environmental contingencies act as constraints and opportunities and influence the organisation’s internal structures and processes.’ Lawrence and Lorsch (1967) Contingency School

Construction Industry

The Management Theories 1. The Classical School 2. The Human Relations School 3. The Systems School 4. The Contingency School

The Four Schools Key points

The Four Schools - Key Points